SACRAMENTO, Calif. — It's no secret that it's expensive to live in California, and when it comes to retirement, the state may not be the best place to stay.
According to data from Bankrate — an independent publisher and comparison service — California ranks as the second worst state for retirement in terms of affordability. Overall, they found it's the third worst state to retire in.
Worst states to retire in:
- Alaska
- Maine
- California
- New Mexico
- Montana
Top states to retire in:
- Florida
- Georgia
- Michigan
- Ohio
- Missouri
Bankrate says it looked at the Community and Economic Research’s July 2022 cost of living index and the Tax Foundation’s 2022 rankings for property and sales tax rates to determine the data for its study.
Bankrate rated each state on five broad categories: affordability, wellness, culture, weather, and crime. According to a chart that layout the standings, Bankrate weighted affordability a top priority when it came to rankings — Affordability (40%), Well-Being (20%), Culture and Diversity (15%), Weather (15%), and Crime (10%).
To read the Bankrate study, click here.
According to the “How America Saves 2022” report compiled by Vanguard, an investment management company, Americans have an average of $141,542 saved up for retirement. Vanguard says retirement plan participants broke new savings records in 2021. They believe Americans need to reach a total saving rate between 12% and 15% or more to meet retirement goals.
